Your company wants to build a new manufacturing facility which will cost $2.5 million for plant and machinery. It will have a net annual income cash flow of $750,000 for the next 10 years.

You could build it in your US location where your total incremental tax rate would be 45%. However you are considering building it in Ireland.

Calculate the after tax present worth of adding a new manufacturing facility in each of the two countries (Ireland and the USA) and determine where it would be better to place the investment. You will need to research tax methods and depreciation rules in Ireland, and compare with those of the US. Use these results to recommend where to make the investment.